- Cryptocurrency exchange FTX and Alameda Research are seeking to recover more than $71 million that was allegedly diverted from the FTX Foundation and “Latona”.
- The money was transferred to life science companies, supposedly for “effective altruism”, however it is believed that the true intention behind these transactions was far from philanthropic.
- Messages unveiled by Vox revealed SBF claiming much of the so-called “ethics stuff” he did prior to his exchange’s exposure was a “front”.
FTX & Alameda Seek Clawbacks From Philanthropic Arm & Life Science Entities
Crypto exchange FTX and its sister company Alameda Research are attempting to recover more than $71 million from FTX’s philanthropic arm and other life science entities. This comes after court documents were filed on Wednesday. It is alleged that the funds were initially transferred to life science companies, such as Lumen Bioscience Inc. and Platform Life Sciences Inc., purportedly for purposes of “effective altruism” – a philosophy advocating for wealth redistribution from wealthy individuals to those in need. However, lawyers representing FTX and Alameda Research argue that the actual intent of these transactions was not philanthropic in nature.
SBF’s Personal Aggrandizement & Political Influence
According to lawyers, ex-FTX boss Sam Bankman Fried (SBF) used the funds for personal aggrandizement and political influence. Furthermore, despite neither firm receiving any explicit benefits from these investments (equity, shares etc.), both SBF and Ross Rheingans-Yoo of Latona intended for any profits generated by these companies to be personally reaped by them.
“Ethics Stuff” Was A Front
In February this year, only 3% of donations received by The United States Democratic Party from FTX and SBF were returned prior to the collapse of the exchange. Additionally, messages unveiled by Vox at the time showed SBF confessing that much of the “ethics stuff” he did before his empire came crashing down was a “front” used just so people would like him.
“Dumb Game We Woke Westerners Play”
In private messages revealed by Vox at the time, SBF wrote: “All the dumb shit I said, it’s not true, not really…This dumb game we woke westerners play where we say all the right shibboleths and so everyone likes us.” This statement furthers suspicions around SBF’s motives in diverting funds away from philanthropy towards personal gain instead.
Ultimately, this case highlights how vulnerable those with intentions rooted in good can be when their money is handled incorrectly or inappropriately diverted. It raises questions about just how effectively altruistic many ‘philanthropists’ actually are – especially when large sums of money are involved – something which should give pause for thought going forward.